Gold hits 6-month high, nears $1,000 an ounce

[Ben Yehuda]

http://finance.yahoo.com/news/Gold-hits-6month-high-nears-apf-2382401670.html?x=0&sec=topStories&pos=2&asset=&ccode=

[The One and Only Mo]

JTF should invest in gold now.

[GoIsraelGo!]

The price of Gold skyrockets, yet the buyers of gold are still trying to get it for free. Then they turn around and sell it at 80 percent profit or more.

I tired to sell a solid 18 karat gold bracelet and the crooks had the nerve to say it was worth only 200 dollars. The bracelet is actually worth 2 thousand, so why were they only offering me 10 percent of it's actual worth? BTW I decided to keep it and sold something else instead.



                                                               Shalom - Dox   

[briann]

The price of Gold skyrockets, yet the buyers of gold are still trying to get it for free. Then they turn around and sell it at 80 percent profit or more.

I tired to sell a solid 18 karat gold bracelet and the crooks had the nerve to say it was worth only 200 dollars. The bracelet is actually worth 2 thousand, so why were they only offering me 10 percent of it's actual worth? BTW I decided to keep it and sold something else instead.



                                                               Shalom - Dox   

Yes, people need to be aware of these crooks.   You should always find out what the price is b4 you sell to anyone.

[GoIsraelGo!]

The price of Gold skyrockets, yet the buyers of gold are still trying to get it for free. Then they turn around and sell it at 80 percent profit or more.

I tired to sell a solid 18 karat gold bracelet and the crooks had the nerve to say it was worth only 200 dollars. The bracelet is actually worth 2 thousand, so why were they only offering me 10 percent of it's actual worth? BTW I decided to keep it and sold something else instead.



                                                               Shalom - Dox   

Yes, people need to be aware of these crooks.   You should always find out what the price is b4 you sell to anyone.

Thank you Briann, I plan to be extra careful before I attempt to sell any more gold.

[The One and Only Mo]

What's the hottest commodity these days? Is it oil, gold, or neither?

[briann]

What's the hottest commodity these days? Is it oil, gold, or neither?

Both commodities seem to be having a similar purpose right now.  Everyone is expecting unprecedented inflation, probably by late 2010, so traders are using Gold and oil as a hedge.  BTW, the prices aren't necessarily as high as you think they are, its just that our currency is in the dumps.

[The One and Only Mo]

What's the hottest commodity these days? Is it oil, gold, or neither?

Both commodities seem to be having a similar purpose right now.  Everyone is expecting unprecedented inflation, probably by late 2010, so traders are using Gold and oil as a hedge.  BTW, the prices aren't necessarily as high as you think they are, its just that our currency is in the dumps.

And the more we spend on oil, the more we are contributing to the Muslim Nazis.

[briann]

What's the hottest commodity these days? Is it oil, gold, or neither?

Both commodities seem to be having a similar purpose right now.  Everyone is expecting unprecedented inflation, probably by late 2010, so traders are using Gold and oil as a hedge.  BTW, the prices aren't necessarily as high as you think they are, its just that our currency is in the dumps.

And the more we spend on oil, the more we are contributing to the Muslim Nazis.

Yes, thats a good thing to consider before you speculate on oil futures.  You are increasing oil's price, and making Islam more powerful.

[Zelhar]

Gold is not an investment, it is a durable commodity.

[briann]

Gold is not an investment, it is a durable commodity.

Yes, but the majority of its price comes from people investing in gold Futures, and gold Futures options, not from purchasing physical gold in the spot market.  This is why its prices, along with the price of oil, is so volatile.

[Zelhar]

Gold is not an investment, it is a durable commodity.

Yes, but the majority of its price comes from people investing in gold Futures, and gold Futures options, not from purchasing physical gold in the spot market.  This is why its prices, along with the price of oil, is so volatile.

I know that but I was trying to say that 'investing' in gold should be called 'speculating' on gold. It is not an income producing asset, rather it costs money just to keep it.

[briann]

Gold is not an investment, it is a durable commodity.

Yes, but the majority of its price comes from people investing in gold Futures, and gold Futures options, not from purchasing physical gold in the spot market.  This is why its prices, along with the price of oil, is so volatile.

I know that but I was trying to say that 'investing' in gold should be called 'speculating' on gold. It is not an income producing asset, rather it costs money just to keep it.

I know what your saying, but I can be a stickler for words sometimes.  we all invest in things that arent income producing, ie 'growth' stocks, real estate, zero coupon bonds, etc.  Even most mutual funds do not declare dividends, and simply re-invest all income produced back into the funds.

Income producing investments are just one of many flavors.

There IS a legitimate reason (Other than speculating ) to hold a SMALL percentage of your portfolio in gold.  It is in case of a true apocalyptic catastrophe.  By this, I mean a nuclear war, etc.   Its like insurance for the unthinkable.   I also suggest ammunition, as this would be become an extremely valuable commodity that doesn't cost much to hold.

[Zelhar]

Gold is not an investment, it is a durable commodity.

Yes, but the majority of its price comes from people investing in gold Futures, and gold Futures options, not from purchasing physical gold in the spot market.  This is why its prices, along with the price of oil, is so volatile.

I know that but I was trying to say that 'investing' in gold should be called 'speculating' on gold. It is not an income producing asset, rather it costs money just to keep it.

I know what your saying, but I can be a stickler for words sometimes.  we all invest in things that arent income producing, ie 'growth' stocks, real estate, zero coupon bonds, etc.  Even most mutual funds do not declare dividends, and simply re-invest all income produced back into the funds.

Income producing investments are just one of many flavors.

There IS a legitimate reason (Other than speculating ) to hold a SMALL percentage of your portfolio in gold.  It is in case of a true apocalyptic catastrophe.  By this, I mean a nuclear war, etc.   Its like insurance for the unthinkable.   I also suggest ammunition, as this would be become an extremely valuable commodity that doesn't cost much to hold.

Gold might come out handy in such scenario, but if you want to prepare to it for real, there are far more important things- seeds, canned food, water filters, sugar, salt. Their value would spike in case of a nuclear war would far beyond the increase in gold.

p.s. moreover, by your scenario, one must hold the actual metal in his home/nuclear fallout shelter.

[MasterWolf1]

I hate to tell you all this cause I work with gold. With it being so high means paper money value is so low.  This is not good at all in fact this is very very bad.

[cjd]

Here is a great site that gives the present and historical prices of gold for the past 175 years.
http://66.38.218.33/charts/historicalgold.html
It seems from the charts that a person who might have invested in gold back in 2000 and stayed in it for the long run might be doing well. It seems however as the prices get higher so do the fluctuations. While I can kick myself for not putting 5 or 10 gs into gold back in the late 70's or even in early 01 looking at the charts this morning I still don't feel compelled to buy gold at todays prices. I think anything that would drive the price of gold well over the thousand mark will bring in an entire new set if issues that would also shortly bring the price of gold back down.

[Zelhar]

Here is a great site that gives the present and historical prices of gold for the past 175 years.
http://66.38.218.33/charts/historicalgold.html
It seems from the charts that a person who might have invested in gold back in 2000 and stayed in it for the long run might be doing well. It seems however as the prices get higher so do the fluctuations. While I can kick myself for not putting 5 or 10 gs into gold back in the late 70's or even in early 01 looking at the charts this morning I still don't feel compelled to buy gold at todays prices. I think anything that would drive the price of gold well over the thousand mark will bring in an entire new set if issues that would also shortly bring the price of gold back down.

From what I see, you'd get about 5% average return on gold from 1975 to 2009. Back in the late 70s, You could buy 30 year government bonds at significantly higher yields. Of course one could earn very high returns on gold with good timing, but that is the case with every type of investment.

[Zelhar]

But speaking of gold, I have a question to birann- Do you think that FDR Administration committed one the greatest robberies in history when they forced the citizens to sell them their gold at artificially reduced price ?

[cjd]

Here is a great site that gives the present and historical prices of gold for the past 175 years.
http://66.38.218.33/charts/historicalgold.html
It seems from the charts that a person who might have invested in gold back in 2000 and stayed in it for the long run might be doing well. It seems however as the prices get higher so do the fluctuations. While I can kick myself for not putting 5 or 10 gs into gold back in the late 70's or even in early 01 looking at the charts this morning I still don't feel compelled to buy gold at todays prices. I think anything that would drive the price of gold well over the thousand mark will bring in an entire new set if issues that would also shortly bring the price of gold back down.

From what I see, you'd get about 5% average return on gold from 1975 to 2009. Back in the late 70s, You could buy 30 year government bonds at significantly higher yields. Of course one could earn very high returns on gold with good timing, but that is the case with every type of investment.

What you say is indeed true a good government bond bought back then would have done better. Over the years I have had a few different things like that and some did very well. It's not that I am in the market to buy gold however I am finding it harder and harder to decide where a good place to invest money is today. Even cash itself is on the skids and it seems that the government although holding all the cards is no longer trustworthy. I guess its a climate like this that has gold inflated to the levels it is at.

[Lewinsky Stinks, Dr. Brennan Rocks]

At least it's not oil (which will it $1000/ounce if the economy ever picks back up).

[briann]

But speaking of gold, I have a question to birann- Do you think that FDR Administration committed one the greatest robberies in history when they forced the citizens to sell them their gold at artificially reduced price ?

This definitely seemed like an overstep of his authority, and I believe that Hoover also did the same think the year before.  However, many Americans refused to do this, it was really only the larger gold investors that were targeted.  There were all sorts of schemes aimed at trying to get more gold during that time.

This really illustrates why a strict gold standard is very dangerous.  There needs to be some sort of flexibility in the currency, otherwise, nearly every large recession will turn into a depression, since the contraction of the money supply will lead to a domino of bank failures, as people rush to withdraw their deposits.

Hooever and FDR simply couldnt stop the bank failures, 1000's of them, because the newly formed Fed refused to un-back the dollar when it needed to be unbacked.  This doesnt excuse the current action of the fed, which is now overcompensating, printing TOO much money.. as this will have horrible effects for our economy around 2011 when the economy starts to stabilize.  It needs to be a balance, and it needs to be done COMPLETELY independent of political pressures.

[The One and Only Mo]

Wish I had some in my backyard (well I have a balcony).